If you took out both federal and provincial loans, they will automatically consolidate if you live in: These provinces allow you to apply for both loans with one application, and after graduation, they consolidate the student loans via the Integrated Student Loans program. There are some provinces and territories that only offer one type of loan, either federal or provincial/territorial, so you'll only have one loan to repay anyway.These include: In all remaining provinces, you could apply for both federal and provincial loans with one application, but these student loans will not be consolidated upon graduation.In fact it can be a good strategy with other debts that get out of hand.But when you add public student loans, you could face real problems. So if you roll in student loans, they're no longer student loans. Because that cuts you off from government programs that assist with student debt.Challenges with student loan debt can hurt your credit, damage your income through wage garnishment and prevent you from achieving goals, such as starting a family or buying a home.
See How Low Your Payment Could Be Understanding Federal Student Loan Consolidation vs Private Student Loan Refinancing Both types of consolidations can lower your payments and reduce the headache of having to keep track of multiple student loans (which can lessen the risk of accidental default), but the similarities usually stop there…
In broad terms, federal student loan consolidation can help create payment flexibility and forgiveness options (provided the borrower enrolls in the correct program) while private student loan consolidation is typically done to get a lower interest rate, thereby lowering your payments (and the total amount paid) as a result.
This usually, depends on the rate the borrower got when they first took out their loans and the current interest rates offered for refinancing student loans.
If you have questions or need help finding the right resources to get out of debt, we can help.
Although student loan consolidation must be separate from credit card debt consolidation, we can put you in touch with student debt consolidation specialist who can assist you.